Product Life Cycle: Maturity Stage

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The response addresses the queries posted in 1913 words with references.

//Before writing about the 'Life Cycle of a Product' of the selected Company, we will discuss about the non Non-American Organization, which is ITC Limited. Then, we will write about one product of the Organization that has reached its stage of maturity within the firm's product offerings.//

Product Life Cycle: Maturity Stage

ITC Limited is one of India's foremost private sector companies founded in 1910. Previously, it was named as 'Imperial Tobacco Company of India Limited'. At present, it is known as the Indian Tobacco Company Ltd. By Forbes magazine, it is rated among the best big companies in the world. The market capitalization of ITC Limited is more than US $ 15 billion and a turnover of US $ 4.75 billion. ITC has its presence in Cigarettes, Paperboards & Specialty Papers, Hotels, Agri-Business, Packaged Foods Packaging, &, Greeting Cards, Branded Apparel, Information Technology Confectionery and other FMCG products. Among the private sector corporation of India, ITC is ranked as third in terms of pre-tax profit.

ITC is a leader of the Indian cigarette industry. It is one of the top-ranking companies in the entire Indian corporate sector. ITC today holds more than 75 percent of the cigarette market of India. Of the 40 ITC brands, Scissors is the oldest in terms of chronology and the main source of income and profit. As the company is already a market leader in cigarette, Scissors' brand of cigarette has reached the maturity stage. The sales volume of cigarette in the market became totally stagnant and all the growth in the entire cigarette market is being gobbled up by the competing brands. The sales of cigarette have suffered a decline in the home country. Cigarette product of the ITC Limited is in maturity stage now. Maturity stage is that stage of the Product life cycle in which the demands tend to reach a saturation point. And there is enough supply from several other competing brands. Price competition becomes intense and the pioneer tries to distinguish his brands by subtle differentiation and exploits the brand loyalty he has built up. Relatively low prices, increased marketing costs, keener competition and lesser profits characterize this stage.

To manage the product life cycle of a particular product, it is essential to take necessary steps. Substantial changes are needed by the company to adopt, in order to manage the maturity stage of a particular product. To cope with the maturity stage of the Scissors cigarette, one of the options in front of the company is to offer its product in the new market. Entering into a new market would help the company to counter the declining sales volume in the home country. In order to improve the profitability of the brand, it is essential for the company to make new investments.

//Above, we discussed about the product of ITC Limited that is in the maturity stage. Now, we will discuss about the assessment of the available financial sources (public and private, identified by their actual names) in the home country to promote global investment for the selected product.//

In order to promote the product in the new ...